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3 years ago

According to Okun's law, if the unemployment rate goes from 4% to 6%, what

Business

1 answer:

Dimas [21]3 years ago

7 0

Answer:

GDP will reduce by 4%

Explanation:

According to Okun, a 1% increase in unemployment will cause a 2% decrease in the level of GDP, and a 1% decrease in unemployment will lead to a 2% increase in the level of GDP.

What this means is that for every increase in unemployment, there is a corresponding double reduction effect on GDP.

In the scenario presented above, we can see that unemployment has gone from 4% to 6%, this means that there has been a 2% increase in unemployment. This 2% increase will therefore cause a 4% decrease in the GDP.

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A manager must ensure fairness and __________ in considering a promotion of an employee.

Evgesh-ka [11]

A promotion is the headway of a worker's rank or position in a hierarchical chain of command framework. Advancement might be a representative's reward for good execution. A manager should ensure nondiscrimination in considering a promotion of an employee.

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4 years ago

In order for team members to communicate effectively, they need the discipline to _______.

melisa1 [442]

The answer is <span>d. Listen first and speak second.</span>

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3 years ago

Read 2 more answers

A pension plan has promised to pay out $25 million per year over the next 15 years to its employees. Actuaries estimate the rate

sweet [91]

Answer:

$250,939,550

Explanation:

Data provided in the question:

Payout, P = $25 million = $25,000,000

Number of years, n = 15 years

Rate of return, r = 5.50% = 0.055

Now,

Present value = $P \times\left[ \frac{1-(1+i)^{-n}}{i} \right]$

on substituting the respective values, we get

Present value = $\$25,000,000\times\left[ \frac{1-(1+0.055)^{-15}}{0.055} \right]$

Present value = $\$25000000 \cdot \left[ \frac{1 - 1.055^{-15}}{ 0.055} \right]$

Present value = $\$25,000,000 \cdot \left[ \frac{1 - 0.447933}{ 0.055} \right]$

Present value = 25000000 × 10.037582

Present value = $250,939,550

7 0

3 years ago

On May 1, 2020, Course Co. borrowed $16,000 and signed a three-year note bearing interest at 6% per annum. Interest is payable q

butalik [34]

The amount that Course Co. should report as a liability for accrued interest on its December 31, 2021 balance sheet is $240.

<h3>What is accrued interest?</h3>

Accrued interest is an accounting expression that shows a liability for interest payment has been incurred for a loan but the payment has not yet been made.

For Course Co., it incurs accrued interest of $240 every quarter for the three-year note payable. Usually, the accrued interest is paid at the beginning of the next quarter.

<h3>Data and Calculations:</h3>

3-year note payable = $16,000

Rate of interest = 6% per year

Date of loan = May 1, 2020

Interest payment = quarterly or 4 times annually

Interest per quarter = $240 ($16,000 x 6% x 1/4).

Thus, the accrued interest on Course Co.'s December 31, 2021 balance sheet is $240.

Learn more about accrued interest at brainly.com/question/1542335

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2 years ago

stock is not expected to pay dividends until three years from now. The dividend is then expected to be $2.00 per share, the divi

Gnesinka [82]

Answer:

The value of the stock today is closest to $53.15

Explanation:

Under the Gordon Growth Model, the share price of share can be calculated as follow

Price of share = D / ( k - g )

Where:

D = End of the first period Dividend

k = Required Rate of Return

g = Expected growth rate

g can be calculated as follow

g = Retention Rate x and ROE

g = ( 1- Dividend Payout Ratio ) x ROE

g = ( 100% - 40% )x 15% = 60% x 15% = 9%

D = $2

k = 12%

Dividends will start at year 3. This will be after 2 years of the end of the year dividend.

Year 3 share Price = $2 / ( 12% - 0.09% )

Year 3 share Price = $66.67

Discounting the year 3 share price back to today's value,

Today's share price = Year 3 share Price / ( 1 + required ROR )^n

Today's share price = 66.67 / ( 1 + 12% )^2

Today's share price = $53.15

6 0

3 years ago